Shares of life sciences company Tarsons Products on Friday listed with a premium of nearly 6 per cent against its issue price of Rs 662.
The stock listed at Rs 700, a gain of 5.74 per cent against the issue price on BSE. It further jumped 22.05 per cent to Rs 808. On NSE, it listed with a premium of 3.02 per cent at Rs 682.
The initial public offer of Tarsons Products Limited received 77.49 times subscription earlier this month.
The Rs 1,023.84-crore IPO had a price range of Rs 635-662 per share.
Here is what analysts had said about Tarsons Products listing:
Ravi Singhal, Vice Chairman at GCL Securities
Demand for Tarsons products are expected to scale northward and hence I would advise long-term investors to hold the counter for 3 months target of Rs 999 maintaining strict stop loss at Rs 735 levels. However, for those who missed getting Tarsons Products shares during the allotment process, my advice for them is to wait till the market stablises as falling markets may bring down Tarsons shares at a discounted price.
Aayush Agrawal, Sr. Research Analyst - Merchant Banking, Swastika Investmart
Tarsons Products has strong financials where margins are very impressive and it also has well-experienced management. The company has strong cash flows and it is likely to become debt-free post IPO. However, the valuations look expensive therefore aggressive investors with a long-term view can hold this stock while those who were playing for listing gains should book profit.
Santosh Meena, Head of Research at Swastika Investmart Ltd
Tarsons Products Limited is backed by a strong management team with great brand awareness and high-quality goods. It is one of the leading life sciences suppliers in India. The company aims to be debt fee post the IPO and is planning for CAPEX, which will further increase the revenues.
We may see profit booking in the stock eyeing the global cues on the concerns of a new variant of Covid-19. However, it is expected that we may see demand for the products of Tarsons in coming quarters. So, long-term investors can hold the stock whereas risk-taking investors can buy the stock maintaining stop loss at Rs 590 levels.
Abhay Doshi, Founder at UnlistedArena
The IPO of Tarsons Products Limited got a decent response from the participants despite priced on the higher side. Strong growth prospects along with decent margins made the issue attractive.
In my view, the issue should reward investors on listing and it may list somewhere around Rs 800 to Rs 850 translating to around 20 per cent gains, which are reasonable.